UBA Launches N239.4 Billion Rights Issue to Bolster Growth, Sustain Industry Leadership
United Bank for Africa (UBA) has announced the launch of a Rights Issue to raise N239.4 billion.
This initiative, which opened on Friday, 15 November 2024, involves the issuance of 6,839,884,274 ordinary shares of 50 kobo each at a price of N35.00 per share.
The Rights Issue, offered on the basis of one new ordinary share for every five existing shares held as of 5 November 2024, provides existing shareholders with the opportunity to increase their stake in the bank.
This development marks the first step in UBA’s broader capital-raising programme following the shareholders’ resolution at the 2024 Annual General Meeting to establish a N400 billion Equity Shelf Programme.
In his communication to shareholders, UBA Group Chairman Tony Elumelu highlighted the strategic importance of the initiative.
“UBA’s Rights Issue aims to raise N239.4 billion to strengthen our capacity to seize growth opportunities and maintain our leadership in the banking industry,” Elumelu stated.
Elumelu outlined the intended use of the proceeds, noting that beyond meeting regulatory requirements, the funds would:
Enhance UBA’s lending capacity, invest in digital infrastructure to drive innovation, support sustainable business practices, and expand UBA’s African operations.
The Chairman also emphasised UBA’s role in fostering economic development across the continent, citing the bank’s landmark partnership with the Africa Continental Free Trade Area (AfCFTA) Secretariat.
“Our pledge of up to US$6 billion in financing over the next three years for eligible SMEs across Africa underscores our commitment to driving economic growth,” he added.
This Rights Issue complies with the Central Bank of Nigeria’s revised minimum capital requirements for commercial banks.
It also reflects UBA’s strong financial performance and commitment to shareholder value, as evidenced by the Group’s 14.8% annualised dividend yield and multiple industry awards, including “Bank of the Year” in eight African subsidiaries and the 2024 “World Best Frontier Markets Bank” accolade.
Shareholders can apply for the provisional allotment through the NGX e-offer portal during the offer period. Customers of UBA are also encouraged to utilise the bank’s internet and mobile banking platforms to access their rights or apply for additional shares.
UBA serves over 45 million customers across 20 African countries and international markets, including New York, London, Paris, and Dubai.
The bank offers a comprehensive range of services, including retail, commercial, corporate, and institutional banking, as well as innovative cross-border payments, trade finance, and remittance solutions.
With this capital-raising initiative, UBA reinforces its commitment to sustainable growth, innovation, and economic development across Africa and beyond.
